Governor criticizes GOP budget plan

INDIANAPOLIS (WISH) - The Statehouse was closed Friday for Good Friday but, with lawmakers gone, Governor Mitch Daniels took the opportunity to weigh in on two of the major issues now before the General Assembly.

Several times today the governor held up a wall street journal article about other states raising taxes to support budgets now out of balance.

He did so to warn that current budget negotiations in the General Assembly could take Indiana in the same direction.

"And at this point I have a respectful disagreement with people in both parties as you can see," said Gov. Daniels.

But it's a Republican budget, passed by a state senate committee on Thursday that is the current focus.

The governor said it uses federal stimulus money for ongoing expenses, not the one-time uses he desires.

The concern is that the budget simply puts off budget concerns until two years from now when there will be no federal stimulus. The governor said it spends at least $600 million too much.

He indicated that the 2% increases in education funding in each year of the 2-year budget are a problem.

Gov. Daniels said, "A much better course would be to be protective of the dollars now and tuck some away so neither the whole budget nor education specifically falls off a cliff in two years."

The governor also weighed in on the effort to raise operating funds for Conseco Fieldhouse and Lucas Oil Stadium.

"I think a casino is the least attractive option. There are far better options," Daniels said.

And its Mayor Greg Ballard, said Daniels, who needs to identify those options.

"He needs to be the central figure and I think he's stepping forward in that way," said Daniels.

The governor repeated that the Capital Improvement Board deficit is a local problem that requires a local solution.

That rules out the hike in the state alcohol tax now under consideration.

The state senate will act on both the state budget and the CIB bailout plan next week.